PRCT — PROCEPT BioRobotics Corporation

Summary of PROCEPT BioRobotics Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: $94.5 million, up 19% year-over-year.
• U.S. Revenue: $83.4 million, a 20% increase compared to Q2 2025.
• Procedures: Over 13,100 U.S. procedures completed, a 21% year-over-year growth, though below expectations.
• Average Selling Price (ASP): U.S. HYDROS system ASP rose to approximately $495,000, up from $485,000 in Q1 2026.
• Gross Margin: 66%, improved from 65% in the prior year, boosted by a $2.9 million tariff recovery.
• Net Loss: $26.9 million, compared to a net loss of $19.6 million in Q2 2025.
• Adjusted EBITDA: Loss of $11.3 million, worse than the $8 million loss in the prior year.
• Cash Position: $231 million as of June 30, 2026.

2. Strategic Updates and Business Highlights

• Commercial Reorganization: Completed U.S. sales force realignment and established a dedicated launch team for HYDROS system rollout.
• Patient Activation Initiatives: Launched pilots in 18 U.S. markets to enhance patient awareness and engagement.
• System Sales: 65 HYDROS systems placed in Q2, including 50 greenfield and 14 replacement systems, indicating strong demand.
• Clinical Advancements: Completed enrollment in the WATER IV trial, further solidifying clinical evidence for Aquablation therapy.
• Regulatory Progress: Received FDA IDE approval for a second randomized trial, WATER IV AF.

3. Forward Guidance and Outlook

• 2026 Total Revenue Guidance: Expected to be between $390 million and $410 million, reflecting a growth of 27% to 33% year-over-year.
• Procedure Guidance: U.S. procedures expected to range from 54,000 to 56,000, a growth of 25% to 29%.
• Adjusted EBITDA Guidance: Projected loss between $35 million and $30 million, with expectations for positive adjusted EBITDA in Q4 2026.

4. Bad News, Challenges, or Points of Concern

• Underperformance in Legacy AQUABEAM Accounts: The shortfall in procedure growth was primarily due to weaker performance in legacy AQUABEAM accounts, which has raised concerns about the installed base's utilization.
• Increased Operating Expenses: Total operating expenses rose to $89.8 million, reflecting investments in commercial initiatives, which may impact profitability.
• Market Competition: Concerns about competition from other procedures like PAE and the impact of changes in physician RVUs were noted, although management downplayed their significance.
• Utilization Metrics: There are concerns regarding the declining utilization rates in legacy accounts, which could affect overall growth.

5. Notable Q&A Insights

• Sales Strategy: Management emphasized the importance of upgrading legacy AQUABEAM systems to HYDROS to improve utilization and procedure growth.
• Patient Activation Programs: Early indicators from direct-to-patient marketing efforts are promising, but translating these into increased procedures may take time due to scheduling constraints at hospitals.
• Market Dynamics: Management acknowledged that TURP procedures remain resilient, which could be a barrier to Aquablation adoption, but they believe that educating patients about Aquablation's advantages is key to driving change.
• Future Growth: Management remains optimistic about the trajectory of the business, citing the potential for improved utilization as more systems are launched under the dedicated launch team model.

This summary encapsulates the key takeaways from PROCEPT BioRobotics' Q2 2026 earnings call, highlighting their financial performance, strategic initiatives, future outlook, and challenges faced in the current market environment.